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    Perplexity AI Proposes TikTok Merger with U.S. Government 50% Stake in $300 Billion IPO

    Perplexity AI Proposes TikTok Merger with U.S. Government 50% Stake in $300 Billion IPO

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    Perplexity AI has revised its merger proposal with TikTok's parent company ByteDance, offering the U.S. government a 50% stake in a new entity that would combine Perplexity with TikTok's U.S. business. The proposal, which was submitted last week, is a revision of an earlier plan presented to ByteDance on January 18, just before a law banning TikTok in the U.S. took effect. Under the new proposal, the U.S. government would own up to half of the new structure upon an initial public offering valued at least at $300 billion. The shares owned by the government would not carry voting rights, and the government would not have a seat on the new company's board. ByteDance would retain TikTok's core recommendation algorithm but would contribute its U.S. business to the new entity, allowing for full U.S. board control. The proposal reflects feedback from the Trump administration and aims to address national security concerns while maintaining ByteDance's ties to TikTok.

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